MD & PA Aim to Align Default Service/POLR with Choice

April 2004

On April 7, the Center for the Advancement of Energy Markets (CAEM) hosted a public meeting to address the default model options states have in transitioning from regulated to competitive electricity markets.

As discussed by the meeting panelists, Maryland, Pennsylvania and many other states have stepped-up efforts to discuss how better to encourage customers - particularly commercial and industrial customers - to shop for competitive offers that support Demand Response and real-time pricing initiatives. According to Michael Swider, Manager of Regulatory Affairs and Government Relations at Strategic Energy, "The link between retail and wholesale prices is critical, particularly as we discuss what are the best ways to get customers to be more responsive to the markets."

On April 2, the Maryland Public Service Commission announced the results of the bidding to provide market priced electric Standard Offer Service (SOS) for Maryland customers whose fixed price electric service offerings are expiring. These new rates are intended to boost competitive options, particularly among commercial and industrial customers.

In addition, the Pennsylvania PUC has begun hosting roundtable meetings to discuss the future obligations of electric distribution companies (EDCs) to provide provider of last resort (POLR) service to customers who do not choose an alternative supplier.